The core of the conflict lies in the funding structure of the industry’s peak research and development body. Dairy farmers contribute over $30 million annually through compulsory levies to fund DA’s operations, including vital research, extension, and marketing programs designed to boost on-farm profitability. Conversely, the ADPF—which represents multinational processors like Lactalis, Saputo, and Fonterra—retains an equal say in strategic decisions, research priorities, and board appointments without contributing a single cent to the organization’s funding base.

This situation, according to the UDV, results in the dilution of the farmer’s voice by “powerful corporate interests”. Mr. Free asserts that this governance imbalance is at complete odds with the vision of Dairy Australia being a truly farmer-led organization. Despite years of discussion and appeals for fairness, the ADPF and its multinational processor members have consistently failed to make any meaningful co-investment in Dairy Australia’s operations, exacerbating the perception of inequitable power distribution.

The resolution to remove the ADPF as a Group B member has been put forward by the Australian Dairy Farmers (ADF) and is strongly supported by the UDV as a “long-overdue structural fix.” The VFF’s United Dairyfarmers of Victoria believes this is a critical step necessary to rebalance DA’s governance model, ensuring that the decision-making power is concentrated with the levy-paying farmers—the ones who actually fund the organization and directly benefit from its effectiveness.